Question 1:- 

India’s foreign exchange rate system is?

a)    Free float                         

b)    Managed float                         

c)    Fixed                         

d)    Crawling Exchange                        

Question 2:- India is facing continuous deficit in its balance of payments. In the foreign exchange
market rupee is expected to 

a)    Depreciate                        

b)    Appreciate                        

c)    Show no specific tendency                        

d)    Depreciate against currencies of the countries with positive balance of payment and
appreciate against countries with negative balance of payment                        

Question 3:- Which of the following is not the feature of FEMA?

a)    There is a simplification of foreign exchange transactions.                        

b)    There was not a discharge provisions of criminal proceedings in case of default
cases.                        

c)    Introduced on 1/1/2004                        

d)    None of the above.                        

Question 4:- Letter of Credit is beneficial for which

party:

a)    Seller (Exporter)                        

b)    Buyer (Importer)                        

c)    Both of the above                        

d)    None of the above.                        

Question 5:- Which is correct about Irrevocable letter of credit:

a)    Only allows change or cancellation of the letter of credit by issuing bank with approval by the
beneficiary.                        

b)    All letters of credit governed by the current UCP are irrevocable letter of
Credit.                        

c)    Both of the above                        

d)    None of the above.                        

Question 6:- The running account facility for packing credit is available for
a)    Status holders only                        

b)    Export for specified goods                        

c)    Exporters with good tack record                        

d)    Exporters with order above 100 crores                        

Question 7:- Arbitrageur in the foreign exchange market

a)    Buys when the currency is low and sells when it is high                        

b)    Buys and sells the currency simultaneously in order to make riskless profits                        

c)    Sells the currency when he has receivables                        

d)    buys or sells to make advantage of market imperfections                        

Question 8:- The purpose of supply chain management is

a)    Provide customer satisfaction                        

b)    improve quality of a product                        

c)    increase production                        

d)    integrating supply and demand management                        

Question 9:- The buying rate is also known

as

a)    swap                        

b)    spread                        

c)    bid rate                        

d)    offer rate                        

Question 10:- Non-citizen employees of a country in which they are working is classified

as

a)    Expatriates                        

b)    coordinates                        

c)    subordinates                        

d)    None of the above.                        

Question 11:- If employee is citizen of India, working in U.S and employed by company whose
headquarters are in Japan then employee is classified as

a)    Third world employees                        

b)    Third country nationals                        

c)    Expatriates                        

d)    Host country nationals                        

Question 12:- Which of the following statements is true?

a)    A transfer price is never the same as the market price.                        

b)    A transfer price is always lower than the market price.                        

c)    A transfer price is always higher than the market price.                        

d)    None of the above.                        

Question 13:- All the offences under the FEMA are considered as which of the following
type?

a)    Civil Offence                        

b)    Criminal Offence                        

c)    Both Civil and Criminal                        

d)    None of the above.                        

Question 14:- When the firms adopt a strategy of limiting recruitment to the nationalities of the host
country where the branch is located, it is called

a)    Polycentric                        

b)    Geocentric                        

c)    Ethnocentric                        

d)    None of the above.                        

Question 15:- The country where the headquarters of a multinational company is located is known
as

a)    Third country                        

b)    Home Country                        

c)    Host Country                        

d)    None of the above.                        

Question 16:- A situation where countries export a product at a price below the cost of its
production.

a)    Dumping                        

b)    Price Discrimination                        

c)    Price Skimming                        

d)    New Protectionism                        

Question 17:- Which of the following countries make up
NAFTA?

a)    United States, Canada and Alaska                        

b)    United States, Canada and Iceland                        

c)    United States, Canada and Mexico                        

d)    United States, Alaska and Mexico                        

Question 18:- Trading blocs do which of the following?

a)    Allow free movement of goods between member countries                        

b)    Offer economic support to member states                        

c)    Allow tax concessions on goods manufactured in other member states                        

d)    All of the above                        

Question 19:- Normally maximum number of days for packing credit

are

a)    90                        

b)    360                        

c)    30                        

d)    180                        

Question 20:- A letter of credit is generally addressed

to

a)    Beneficiary                        

b)    Negotiating Bank                        

c)    Reimbursing Bank                        

d)    None